Started from Hong Kong Island

Chapter 87 [Stock Market Real Estate Investment]

"Mr. Li, you have sold all the shares of Swire Group that you held. The average purchase price was 4.9 yuan, and the average selling price was 7.6 yuan. After deducting all expenses, you have recovered 327.1 million yuan. The leverage requires a deposit of 100 million yuan. Now there is 227.1 million yuan left in your stock account." Wu Xiong reported. He was waiting for Li Wendi to give the order.

Li Wendi nodded and instructed, "Take out another 100 million to buy shares of the Landmark Company."

"Mr. Wu, I heard that many Chinese companies are preparing to go public. I wonder if you can help me get some of their listed stocks once they go public?"

According to Li Wendi's plan, if Wu Xiong had difficulties, he would immediately invest the 127 million in cash in other securities companies, such as Feng Jingxi's Sun Hung Kai Securities.

Feng Jingxi is a veteran in Hong Kong's business community and has been working in the real estate industry for many years. It should not be a problem for him to ask his securities company to get some listed stocks.

As a practitioner in the financial sector, Wu Xiong naturally heard some rumors. It was not just a Chinese-funded company preparing to go public, but a group of them. The commotion was quite big. What surprised him was that Li Wendi seemed to have expected these things to happen. Could it be that Mr. Li had a reliable source of information?
"Mr. Li, you also know that there are countless securities companies in the Hong Kong market. If it is a company that entrusts a securities company under HSBC to assist in listing, I can help it get some stocks, but I can't get too large a number of stocks." Wu Xiong clearly stated his sphere of influence.

Li Wendi naturally knew that what Wu Xiong said was true, but he guessed that many large Chinese companies would choose to get help from Waldo. After all, Waldo was one of the most professional securities companies in Hong Kong, and Waldo had HSBC as its backer. Some things were difficult for other companies, but Waldo had a "pass".

"Each company only needs to get 20 to 40 shares. Are you confident, Mr. Wu?" Li Wendi asked tentatively.

"I'll do my best, it shouldn't be a big problem." Wu Xiong said after thinking for a while.

"Okay, thank you in advance, Mr. Wu." Li Wendi said with a smile, "I guess the Chinese company will not go public in the short term, so the remaining funds still need to be invested. Does Mr. Wu have any good investment suggestions?"

Wu Xiong shook his head and said, "The stock market is still the same. I suggest investing in large companies and making steady investments. Mr. Li, investing in large company stocks will also make it easier for you to cash out and buy stocks of Chinese-owned listed companies later."

Large companies have more stocks and can sell them in large quantities without worrying too much about stock market turbulence.

Li Wendi nodded and said, "Then buy the stocks of Wheelock, Hutchison Group, and Mobil Corporation separately."

"Average buy? Or?" Wu Xiong asked.

Li Wendi thought for a while and said, "Hutchison Group and Meifu Enterprises each buy 50, and use the remaining funds to buy Wheelock."

It is not that Standard Chartered Corporation is larger in scale than Wheelock, but Wheelock's main focus is on shipping. Even though it has a good land reserve, it has not yet focused on development. Therefore, the stock price increase is not as good as Standard Chartered Corporation.

"Okay, I will buy them all before tomorrow afternoon." Wu Xiong promised.

"Thank you for your hard work, Mr. Wu." Li Wendi took out a check from his pocket and slowly pushed it across the table in front of his chest.

Wu Xiong looked at the number on the check and said, "Thank you, Mr. Li!"

The current social order is relatively chaotic, and the financial sector is not as strict as it will be in later generations, so it is normal to receive rewards from customers.

The business of the North Point Warehouse Market is beginning to draw to a close. Only a few stalls have yet to be sold, and the profit earned is only a few hundred thousand, which is nothing compared to the project in Sham Shui Po.

The project of Bao's father and son is still far from being completed and is still under renovation. Li Wendi received news that Bao's father and son are interested in selling the two warehouses. Although it is a loss-making approach, terminating the project can allow Bao's company to recover funds as soon as possible and earn back the losses from other business projects.

Not every businessman can make the bold move of cutting off one's arm, because it means admitting one's mistakes, which is a difficult decision for people with a certain status, after all, it will cause loss of face.

Yan Cong's project has been completed and he is selling stalls, but the price is higher than Li Wendi's, so the situation of 'good locations need to be snatched up, while worse locations have no one interested' has emerged.

In Li Wendi's opinion, Yan Cong is greedy and insists on selling at a high price. Once the North Point warehouse renovation business becomes prosperous, he will be in trouble.

Li Wendi's business in Causeway Bay also encountered some difficulties. Zhang Wentao helped the company acquire several properties, but these properties were not in the best locations, and they had to wait for Causeway Bay to develop before they could make big profits from the properties.

This made Li Wendi a little disappointed. Of course, Li Wendi also knew that Causeway Bay, which was targeted by many real estate developers, was not something that could be easily taken advantage of and that many problems would be encountered, such as bidding.

“Boss, a large number of our peers have flocked into Causeway Bay, and there are very few land and properties we can get. It would be better for us to invest in other areas,” Zhang Wentao suggested.

In fact, Zhang Wentao is also in a dilemma. Continuing to stick to the Causeway Bay area will not bring any benefits to the company.

Of course, competition from real estate developers will accelerate the development of Causeway Bay. However, Li Wendi’s funds are very limited, and the properties he can acquire are even more limited.

"Yeah." Li Wendi nodded and asked, "Where do you think we should go next?"

“The market conditions for industrial buildings are good, we can give it a try,” Zhang Wentao suggested.

“Industrial buildings are indeed good. Kwai Chung Pier has just started operations and there are not many industrial buildings. Many factories will move to Kwai Chung, and there will inevitably be a shortage of industrial buildings,” Li Wendi analyzed.

Zhang Wentao seemed to have different opinions, but was afraid of offending Li Wendi, so he organized his words.

"Just say whatever you want to say. There's no need to hide anything. There are only two of us here." Li Wendi said with a faint smile.

“In fact, I am more optimistic about the industrial buildings in the Kowloon Bay area.” Zhang Wentao explained his suggestion.

Li Wendi thought for a moment and felt that Zhang Wentao's words made sense. "Okay, then we will acquire industrial building properties in these two areas at the same time. If the funds are insufficient, we can take out a mortgage loan."

When doing business, you cannot stick to one way of doing business. Risky business has the highest failure rate, but the profits are unmatched by other ways.

"Yes! I'll write out a plan right away and hand it over to you to have a look." Zhang Wentao said respectfully.

"Wait! This is another project plan I made. If there is no problem, do this project first." Li Wendi said.

Zhang Wentao took the plan away, but there was a lot of confusion on his face. Why didn’t the boss come up with a plan as soon as possible?

(End of this chapter)